question 6 (8 points) which of the following is an example of vertical integration? a purchasing competitors…

question 6 (8 points) which of the following is an example of vertical integration? a purchasing competitors b purchasing suppliers c informally agreeing on prices d buying stock in competing companies

question 6 (8 points) which of the following is an example of vertical integration? a purchasing competitors b purchasing suppliers c informally agreeing on prices d buying stock in competing companies

Answer

Brief Explanations:

Vertical integration involves a company expanding its operations either upstream (towards suppliers) or downstream (towards customers). Purchasing suppliers is an example of forward - vertical integration as it gives the company more control over its input sources. Purchasing competitors is horizontal integration, informally agreeing on prices is price - fixing (a non - integration related anti - competitive behavior), and buying stock in competing companies is an investment activity not related to vertical integration.

Answer:

B. purchasing suppliers